Five Rivers Electronic Innovations

Five Rivers Electronic Innovations, LLC was an American television manufacturer based in Greeneville, Tennessee. The company was established in 1997, when Knoxville businessmen George Taylor and Charles White acquired Philips Consumer Electronics' Greeneville television manufacturing facility. Its operations inherited a long industrial history: Magnavox had opened the first of its Greeneville plants in 1947, added a second in 1952, and built a much larger third plant in 1962. Philips acquired Magnavox and the Greeneville facilities in 1974, but employment and production levels fluctuated during the 1980s and early 1990s as television manufacturing became increasingly exposed to international competition. Five Rivers initially operated as a contract and branded television producer rather than as a consumer electronics company with a broad independent retail identity. It manufactured Philips- and Magnavox-branded televisions and produced digital television sets for other companies. In March 1999, it began manufacturing the 36-inch Loewe Art digital television in cooperation with Sensory Science Corporation. The plant also made components and later produced plastic parts for Sony, illustrating the company's reliance on a mixture of television assembly, contract production, and related manufacturing work. The business briefly supported a substantial local workforce. At the beginning of 2001, approximately 700 employees worked on television production and about 1,300 additional workers were involved in component manufacturing whose employment depended on television output. That scale declined as the economy weakened and orders became less predictable. The company announced a reduction of approximately 140 positions in February 2001 and cut a further 335 jobs in December 2002. Although it expected some rehiring after the latter reduction, the pattern showed the vulnerability of a domestic plant whose output was tied to changing brand contracts and seasonal demand. Five Rivers attempted to adapt to changing television technology and market conditions. In 2003 it began mass-producing flat-screen cathode-ray-tube televisions, while its workforce fell to about 535 employees by early 2004. New business from Asian companies affected by tariffs led the plant to recall 150 workers and add production lines in May 2004. In October of that year, the company lost a Philips contract and laid off 110 employees, but it simultaneously recalled 280 workers for Samsung-related production, taking employment to approximately 812. These developments reflected the plant's dependence on external brands and contracts rather than on a stable proprietary product portfolio. The company filed for Chapter 11 bankruptcy on October 25, 2004, after Philips stopped selling its liquid-crystal-on-silicon televisions. It continued producing television equipment during the bankruptcy period. In July 2005, Five Rivers Technology produced an Akai rear-projection television described as the last television manufactured in the United States by an American-owned company; the set was later displayed at the Greeneville-Greene County History Museum. The company ultimately shut its operations in September 2006 and auctioned unused machinery and other equipment. Its decline was associated with the broader movement of television production toward lower-cost imports from China, Malaysia, and other Asian manufacturing centers.

Five Rivers Electronic Innovations emerged from the long-standing television-manufacturing base in Greeneville, Tennessee. Magnavox established its first Greeneville plant in 1947 and a second in 1952. In 1962, it opened a third facility that became the largest television manufacturing plant in the United States. The complex was central to Greeneville's economy and at one point Magnavox was the town's largest employer, with more than 5,000 workers. Philips acquired Magnavox and its facilities in 1974, after which employment at the Greeneville operation fluctuated and generally declined during the 1980s and early 1990s. In May 1997, Philips sold the television manufacturing plant, including the major Plant 3 facility, to Knoxville businessmen George Taylor and Charles White. They organized the operation as Five Rivers Electronic Innovations. The new company retained the site’s role in television production while operating in an increasingly contract-oriented and internationally competitive industry. It produced televisions under Philips and Magnavox branding and also manufactured digital televisions for other companies. A significant early project began on March 1, 1999, when Five Rivers started producing the 36-inch Loewe Art digital television in partnership with Sensory Science Corporation. By early 2001, the plant employed approximately 700 people in television manufacturing and about 1,300 more in component work linked to television production. This employment level was not sustained. A slowing economy led to the elimination of roughly 140 jobs in February 2001. On December 19, 2002, the company announced another reduction, this time affecting 335 employees because of weaker orders and a larger-than-usual seasonal adjustment. Management nevertheless expected to rehire approximately 80 to 100 workers by late January 2003. Around the same period, the plant began making plastic parts for Sony. Five Rivers sought to remain viable by adjusting its products and customers. In 2003, it began mass-producing flat-screen CRT televisions. By early 2004, employment had fallen to approximately 535, a record low for the facility under Five Rivers. The company then recalled 150 workers and added production lines in May 2004 after obtaining new business from Asian companies whose products were affected by tariffs. The recovery was unstable: on October 15, 2004, Five Rivers laid off 110 workers after losing its Philips contract, while recalling 280 workers for Samsung production. The combined changes brought the workforce to roughly 812 employees. The company filed for Chapter 11 bankruptcy on October 25, 2004. The filing followed Philips' decision to stop selling its liquid-crystal-on-silicon televisions, a development that removed an important source of production work. Five Rivers continued manufacturing during the bankruptcy period. In July 2005, Five Rivers Technology produced an Akai rear-projection television. The set became associated with the end of American-owned television manufacturing and was subsequently placed on display at the Greeneville-Greene County History Museum. The company's difficulties reflected structural changes in the television industry. Low-cost imported color televisions from China, Malaysia, and other Asian production centers placed pressure on American manufacturers. Five Rivers later filed an anti-dumping lawsuit against Chinese television manufacturers, but the company remained exposed to import competition, changing technology, and the decisions of the brands for which it manufactured products. In September 2006, it closed its operations and auctioned unused machinery and other equipment. The closure ended the Greeneville facility's period as an American-owned television manufacturer, although the site's earlier Magnavox and Philips history remained important to the region's industrial heritage.

• 2006

  Greeneville operations shut down

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Five Rivers closed its operations and began auctioning unused equipment.

• 2005

  Akai rear-projection television is produced

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Five Rivers Technology produced an Akai rear-projection television later preserved at a local history museum.

• 2004

  Chapter 11 bankruptcy filing

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  The company filed for Chapter 11 bankruptcy after losing important Philips-related television business.

• 2003

  Flat-screen CRT production begins

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Five Rivers began mass-producing flat-screen cathode-ray-tube televisions.

• 1999

  Loewe Art digital television production begins

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  The company began producing the 36-inch Loewe Art digital television in partnership with Sensory Science Corporation.

• 1997

  Five Rivers is established

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  George Taylor and Charles White acquired Philips' Greeneville television plant and established Five Rivers Electronic Innovations.

• 1974

  Philips acquires Magnavox facilities

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Philips acquired Magnavox and its Greeneville manufacturing operations.

• 1962

  Plant 3 is built

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Magnavox constructed a large third facility that became the largest television manufacturing plant in the United States.

• 1952

  Second Greeneville plant opens

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Magnavox expanded its Greeneville manufacturing presence with a second plant.

• 1947

  Magnavox opens the first Greeneville plant

  [1]Five Rivers Electronic Innovationsen.wikipedia.org

  Magnavox opened its first television-related manufacturing facility in Greeneville, establishing the industrial base later used by Philips and Five Rivers.

A domestic contract television and electronics manufacturer serving established consumer-electronics brands, with production spanning branded televisions, digital sets, components, and related plastic parts.

• Televisions · 1997

  Philips-branded televisions

  Five Rivers manufactured Philips-branded television sets at its Greeneville plant. Philips was a major customer and brand relationship, but the company's dependence on Philips also made its production volume vulnerable to changes in Philips' product strategy and contracts. The loss of Philips-related business in 2004 contributed to the plant's financial distress.

• Televisions · 1997

  Magnavox-branded televisions

  The company produced televisions carrying the Magnavox name, connecting Five Rivers to the Greeneville site's earlier history under Magnavox and Philips. These sets formed part of the company's branded manufacturing activities rather than a distinct Five Rivers consumer line.

• Digital television · 1999

  Loewe Art 36-inch digital television

  Beginning on March 1, 1999, Five Rivers manufactured the 36-inch Loewe Art digital television in partnership with Sensory Science Corporation. The project demonstrated the plant's move beyond conventional analog television assembly and its role as a contract producer for outside electronics brands.

• Televisions · 2003

  Flat-screen CRT televisions

  Five Rivers began mass-producing flat-screen cathode-ray-tube televisions in 2003. The products represented an attempt to respond to changing consumer expectations while continuing to use CRT manufacturing capabilities during the transition toward newer display technologies.

• Rear-projection television · 2005

  Akai rear-projection television

  In July 2005, Five Rivers Technology produced an Akai rear-projection television. It became historically notable as an example of late American-owned television production and was later displayed at the Greeneville-Greene County History Museum.

• Electronics components

  Electronic components and plastic parts

  In addition to complete television sets, the Greeneville operation manufactured components and began producing plastic parts for Sony. This work provided an additional production activity but remained economically connected to the broader television and consumer-electronics market.

• 2004

  Add production lines for tariff-affected customersStrategy

  Background

  New business became available from Asian companies whose products were affected by tariffs.

  Action taken

  The plant recalled approximately 150 workers and added production lines.

  Aftermath

  Employment later changed sharply when the company lost Philips work and recalled workers for Samsung production.

  Source

• 2004

  File for Chapter 11 bankruptcyOther

  Background

  Philips stopped selling its liquid-crystal-on-silicon televisions, removing important production business from Five Rivers.

  Action taken

  Five Rivers filed for protection under Chapter 11 of the United States Bankruptcy Code on October 25, 2004.

  Aftermath

  The company continued operating for a period, produced an Akai rear-projection television in 2005, and ultimately closed the Greeneville plant in 2006.

  Source

• 2003

  Expand into flat-screen CRT productionStrategy

  Background

  The company was operating in a declining domestic television-manufacturing environment and faced growing competition from lower-cost imported sets.

  Action taken

  Five Rivers began mass-producing flat-screen cathode-ray-tube televisions.

  Aftermath

  The initiative did not prevent continued workforce reductions and financial pressure during 2004.

  Source

1. 1Five Rivers Electronic Innovationsen.wikipedia.org